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Zopa, the world’s first person to person (P2P) lender, recently signed a deal with Metro bank, a challenger bank in London started by Vernon Hill, who created Commerce Bank in the U.S. Metro.

The Metro partnership will provide Zopa with additional funds to lend, said Giles Andrews, Zopa’s co-founder and CEO.

"This will allow the bank to lend its funds on our platform, a first of its kind in the UK," wrote Zopa's Mat Gazeley "This exciting development in the UK's financial services industry is the first partnership between a UK P2P platform and a retail bank. The move will see Metro Bank receive a return by lending millions of pounds each month directly to UK consumers through Zopa." Zopa had previously announced a deal with Uber to help drivers buy their own cars.

From 2008 until relatively recently, Zopa could support its growth of 80 to 100 percent a year with retail funds, but more recently it has pursued institutional funds to meet lending demands.

“We have a blend of both; I want to maintain retail flavor to our brand,” explained Andrews. “Metro is very good at getting deposits but it is very focused on the asset side.”

Metro runs more like a customer-friendly retailer than a traditional bank. It is open 7 days a week, 362 days of the year. Each branch has a free coin counting machine and welcomes dogs with bowls of water and dog treats. Bikers can ride directly up to the tellers -- no need to lock the bike outside. (Hill explains his almost obsessive customer focus in a fascinating short book, “Fans, Not Customers: How to Create Growth Companies in a No Growth World”.)

The alliance between Zopa and Metro will provide the lender with the funds it needs and attractive returns for Metro.

Zopa, got started in 2004 as an investment vehicle, added Andrews.

“We launched the business to solve a problem for retail consumers — they don’t have much to do with their money. In the UK, people don’t like stocks and shares.”